The outlook is negative. The core Company operations remain challenged by longer maintenance intervals and lighter work content. We were expecting the contribution from engine shop visits at the associates & JV to have stabilised, but this was marred by the one-time events. We are cautious over further negative impact from restructuring of other associated and JV companies.
Maintain Neutral; new target price of S$2.66 (previously $2.81)
We have lowered our FY19e earnings estimate by 3%. SIAEC is in a net cash position and offers a dividend yield of 4.6%. Our target price gives an implied FY19e forward P/E multiple of 20.1 times.